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Here is the key paragraph from todays 10k. It also mentions gold related assets. (https://www.sec.gov/Archives/edgar/data/1318605/000156459021004599/tsla-10k_20
by andysinclair 6y ago
Here is the key paragraph from todays 10k. It also mentions gold related assets.
(https://www.sec.gov/Archives/edgar/data/1318605/000156459021004599/tsla-10k_20201231.htm https://www.sec.gov/Archives/edgar/data/1318605/000156459021...):
"In January 2021, we updated our investment policy to provide us with more flexibility to further diversify and maximize returns on our cash that is not required to maintain adequate operating liquidity. As part of the policy, which was duly approved by the Audit Committee of our Board of Directors, we may invest a portion of such cash in certain alternative reserve assets including digital assets, gold bullion, gold exchange-traded funds and other assets as specified in the future. Thereafter, we invested an aggregate $1.50 billion in bitcoin under this policy and may acquire and hold digital assets from time to time or long-term. Moreover, we expect to begin accepting bitcoin as a form of payment for our products in the near future, subject to applicable laws and initially on a limited basis, which we may or may not liquidate upon receipt."
- bob33212 6y agoAll global companies with cash reserves "Maximize returns on Cash" via currency and other investments and hedges.
- MrMan 6y agoThe intention of cash management is hedging to facilitate commerce and protect the balance sheet, not speculation.
- bob33212 6y agoThis is a hedge. A hedge against consumers/suppliers/employees using BTC as their preferred form of payment.
- MrMan 6y agotesla doesnt need to hold sizable BTC reserves to accept BTC as payment, so using the word hedge there doesn't seem correct to me. please elaborate on your stratement, it doesnt make sense that this BTC position is a hedge. it seems like a speculative allocation, betting on BTC price increasing vs USD? and maybe some kind of marketing thing to convince people tesla is cool?
- bob33212 6y agoAll major corporate asset allocation is speculative. Look at Exxon's assets. Some are in short term investments. BTC can be seen as a short term investment to offset depreciation of the USD. https://www.wsj.com/market-data/quotes/XOM/financials/annual/balance-sheet https://www.wsj.com/market-data/quotes/XOM/financials/annual...
- ed25519FUUU 6y agoYou’ll notice that even if they accept Bitcoin as payment, they’ll never price anything in Bitcoin. Nobody does that. They always price it in dollars and accept Bitcoin at the market rate. When people start pricing things I’m Bitcoin without doing some daily calculation, that’s when you know it’s serious.
- koheripbal 6y agoYou will never be able to price anything in Bitcoin, ever. It's volatile because deflationary currencies are inherently volatile. The future of finance is in some future crypto that provides for economic-growth-based inflation/deflation of the money supply. The Fed does this manually, and that's what keeps USD more-or-less stable.
- charcircuit 6y agoThere are already multiple stable coins that exist that are pegged to the dollar.
- koheripbal 6y agoPegging to the dollar is not really its own currency then. ...and yes, Tether is far more used than Bitcoin for non-speculative trading.
- nickik 6y ago> It's volatile because deflationary currencies are inherently volatile. That is wrong. Maybe you mean 'fixed supply currency'. There is nothing inherent in deflation, defined as 'general decline in general price level' that makes it volatile in terms of purchasing power. The old pre-WW1 gold standard was deflationary, but it was also as stable as any system humans have ever come up with. It worked by banks adjusting reserves depending demand for their base currency.
- tibbon 6y agoFWIW, there's plenty of volatile fiat currencies that things are priced in today. Stability has never been required for pricing.